How many SME IPOs did we see in 2022, and were they successful?

In the year's first nine months, we have seen IPOs collect Rs. 1,460cr. 87 IPOs have increased interest in this investment option.

SME IPOs Are Garnering Massive Investor Interest

Data suggests Rs. 1,460cr was almost double what 56 companies collected during 2021 through IPOs. 56 IPOs garnered Rs. 783cr last year. We can see more companies entering the platform in 2022. 

In the year's first nine months, we have seen initial public offerings collect Rs. 1,460cr. 87 IPOs have increased interest in this investment option. Data suggests Rs. 1,460cr was almost double what 56 companies collected during 2021 through IPOs. 56 IPOs garnered Rs. 783cr last year. We can see more companies entering the platform in 2022. Fedex Securities Director Uday Nair said that larger brokers and tech-based players could significantly impact the small and medium-sized enterprises platform. He believes it is a good year for SMEs to raise capital from the stock exchange. Hem Securities Director Prateek Jain believes the market's bearishness does not affect the SME segment, and investors want many initial public offerings in the pipeline. 

Also Read: How is IPO price decided?

As It Happened

Several companies plan to or have filed their listing documents on the NSE Emerge and BSE SME platforms. Reports suggest around 87 IPOs made their way to the SME platforms. These 87 IPOs raised around Rs. 1,460cr from Jan-Sep. They belong to sectors like jewelry, hospitality, infra, pharma, auto, and IT in the stock exchange. We saw 29 SMEs hit the market in September, even after a volatile secondary market. We saw only nine in August. 25 SME issues have concluded, and four are ongoing out of the 29 in September. Retail investors and qualified institutional investors have participated in initial public offerings, and a very successful IPO was that of Insolation Energy. We saw the IPO conclude last week, and buyers subscribed 183 times. 

Outperforming Benchmarks

Insolation Energy was BSE SME IPOs highest subscription. Hem Securities Director Gaurav Jain believes the fundraising in 2022 must be attributed to the performances of the very strong IPOs, attracting many investors. He believes that the IPOs might be small in size but are garnering good responses. He believes the segment gave a solid performance when the benchmark indices performed poorly and the main board IPOs saw fewer issues compared to 2021. Nair, Fedex Securities said that small and medium-sized enterprises are sector-agnostic to raise growth capital. Several companies are entering the market, and investor confidence increases as these companies have strong IPO performances. 

Also Read: Multibagger SME IPOs of 2022. Did you invest in any?

Around 20 companies, including LIC, chose the main-board IPO, raising Rs. 43,275cr from Jan-Sep. On the other hand, over Rs. 1.2 lac crore was mopped up by 63 firms in 2011. NSE and BSE stock exchanges launched SMEs in 2012 and were the only bourses offering this segment in India. 

Disclaimer: This article is intended for general information purposes only and should not be construed as investment or legal advice. You should separately obtain independent advice when making decisions in these areas.

Data suggests Rs. 1,460cr was almost double what 56 companies collected during 2021 through IPOs. 56 IPOs garnered Rs. 783cr last year. We can see more companies entering the platform in 2022. 

In the year's first nine months, we have seen initial public offerings collect Rs. 1,460cr. 87 IPOs have increased interest in this investment option. Data suggests Rs. 1,460cr was almost double what 56 companies collected during 2021 through IPOs. 56 IPOs garnered Rs. 783cr last year. We can see more companies entering the platform in 2022. Fedex Securities Director Uday Nair said that larger brokers and tech-based players could significantly impact the small and medium-sized enterprises platform. He believes it is a good year for SMEs to raise capital from the stock exchange. Hem Securities Director Prateek Jain believes the market's bearishness does not affect the SME segment, and investors want many initial public offerings in the pipeline. 

Also Read: How is IPO price decided?

As It Happened

Several companies plan to or have filed their listing documents on the NSE Emerge and BSE SME platforms. Reports suggest around 87 IPOs made their way to the SME platforms. These 87 IPOs raised around Rs. 1,460cr from Jan-Sep. They belong to sectors like jewelry, hospitality, infra, pharma, auto, and IT in the stock exchange. We saw 29 SMEs hit the market in September, even after a volatile secondary market. We saw only nine in August. 25 SME issues have concluded, and four are ongoing out of the 29 in September. Retail investors and qualified institutional investors have participated in initial public offerings, and a very successful IPO was that of Insolation Energy. We saw the IPO conclude last week, and buyers subscribed 183 times. 

Outperforming Benchmarks

Insolation Energy was BSE SME IPOs highest subscription. Hem Securities Director Gaurav Jain believes the fundraising in 2022 must be attributed to the performances of the very strong IPOs, attracting many investors. He believes that the IPOs might be small in size but are garnering good responses. He believes the segment gave a solid performance when the benchmark indices performed poorly and the main board IPOs saw fewer issues compared to 2021. Nair, Fedex Securities said that small and medium-sized enterprises are sector-agnostic to raise growth capital. Several companies are entering the market, and investor confidence increases as these companies have strong IPO performances. 

Also Read: Multibagger SME IPOs of 2022. Did you invest in any?

Around 20 companies, including LIC, chose the main-board IPO, raising Rs. 43,275cr from Jan-Sep. On the other hand, over Rs. 1.2 lac crore was mopped up by 63 firms in 2011. NSE and BSE stock exchanges launched SMEs in 2012 and were the only bourses offering this segment in India. 

Disclaimer: This article is intended for general information purposes only and should not be construed as investment or legal advice. You should separately obtain independent advice when making decisions in these areas.

Expert Article block example

NEWSLETTER

Related Article

Premium Articles